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Let's say an investor has a capital of 1 0 0 0 0 0 0 euros and is considering whether it is beneficial for him

Let's say an investor has a capital of 1000000 euros and is considering whether it is beneficial for him to invest for 3 months in euros (domestic currency) or sterling (foreign currency). The current exchange rate is 1 sterling =1.42 euros. The 3-month interest rate of the euro on an annual basis is 3%. The 3 month interest rate for sterling on an annual basis is 4%. The 3-month forward rate is 1 sterling =1.39 euros. What should the investor decide?

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